Middle Coast Investing on TriMas Corporation
Thesis
TriMas is a packaging and gas-cylinder business whose balance sheet improved after disposing of its aerospace unit. The investor estimates its valuation at about 9.2 times 2026 EV/EBITDA, with steady packaging growth and a gas-cylinder recovery. Share buybacks or a possible sale to a more natural owner create upside, but management could squander funds in acquisitions.
“I think there’s a better chance of a positive surprise than a negative one in this story.”
Key risks
- A value-destructive acquisition
- The unusual corporate size could deter a sale
- Uncertainty about post-sale corporate costs